Wales offers significant economic advantages for logistics and warehouse businesses – and mezzanines are a great problem-solver when it comes to choosing the right premises.
Industrial property in Wales is among the most affordable in the UK, office rents in Cardiff are the lowest for any major city in the UK, and commercial property costs around 40% of London prices. In fact, with Cardiff less than two hours from the capital, companies can enjoy the benefits of easy access without being burdened by the extra costs of being based in London.
International trade is facilitated by major ports located along the Welsh coast, each with good road and rail links to other UK major cities and transport hubs, while Cardiff’s airport connects to main European hubs including Amsterdam and Paris. Birmingham, Liverpool and Manchester are in convenient proximity to North and Mid Wales.
A game-changer for vertical capacity
A tight property market does mean that logistics space is in high demand, and this is where a mezzanine can be a game-changer.
Installing one or more mezzanine floors allows dynamic companies to derive maximum benefit from available space.
At Hi-Level Mezzanines we are helping our clients make full use of their vertical capacity – including future-proofing to ensure they have the space they need for more product and more staff as their businesses grow.
This is important in a context where demand for premises is significant. “There remains an acute undersupply of suitable logistics space in the region,” said Ben Quarrie, Development Director at St. Modwen Logistics near Newport, the gateway to South Wales.
The firm owns St. Modwen Park with c. 345,000ft² of units. Occupiers include Amazon and industrial equipment distributor Genpower. “We are continuing to explore opportunities to deliver even more space, including the possibility of a variety of bespoke, build-to-suit units up to 600,000ft² for interested companies,” Mr Quarrie said.
North to south
Hi-Level Mezzanines has completed projects all over Wales, from Cardiff on the south coast to St Asaph in the north, passing through Port Talbot, Swansea, Merthyr Tydfil and Cwmbran.
We have installed mezzanines for a High Street fashion retailer, an e-commerce giant, one of the big five supermarket chains, a brewery and a furniture manufacturer.
Well-known businesses with headquarters in Wales include Admiral Group, Iceland, Redrow and The Royal Mint. Companies can recruit from the pool of half a million graduates each year from around the UK who have studied at Welsh universities.
Multiplying available space with mezzanines
One online business, Adexa Direct, recently invested £2m to buy a warehouse in the Principality to bring more functions in-house. This is exactly the scenario where installing a mezzanine can multiply the space available to increase stock levels, expand product range and even open a showroom to give customers the chance to see first-hand before they buy.
Adexa, an internet catering equipment reseller, acquired the commercial property in South Wales to give it added storage space after turnover increased 40% year on year to £36m. It plans to carry out a “major part” of its warehousing functions in-house, rather than outsourcing to a third-party provider. It has significantly developed its portfolio of own-branded catering equipment, hospitality furniture, and warehouse racking and storage products.
While labour costs will rise, the move will reduce storage expenses and deliver “better operational results”, the company said.
Steel heritage
There is also an important link between mezzanines and Wales, which has a strong history of steel production. Steel is an essential material used in all our mezzanine floors.
The original steelworks in Port Talbot was founded in 1902, but nearly 2,000 jobs are to go following the closure of its last blast furnace. Now owner Tata Steel is looking at more environmentally friendly steelmaking, however.
It has submitted plans for electric arc furnace steelmaking, hailed as a major step towards decarbonising steel production and securing a future for steelmaking in South Wales. Business and trade secretary Jonathan Reynolds said: “This marks another important step towards a bright, long-term future for steelmaking in South Wales, and builds on the improved deal for Port Talbot’s transition this government has agreed with Tata Steel.”
Ideal for mezzanines
The strength and durability of steel makes it ideal for mezzanines. It can support light to heavy loads to suit any application as well as providing a long-lasting, low-maintenance solution. Its versatility means we can design and install bespoke mezzanine floors that can be adapted and expanded over time to meet our clients’ growing needs.
Read more on other regional logistics centres: Europe, Yorkshire and the North East, London, North West and the East of England.
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